1. Project Management: A Managerial Approach
Chapter 1 – Projects in Contemporary Organizations
© 2006 John Wiley and Sons, Inc.

2. © 2006 John Wiley and Sons, Inc.
Overview
Project Management Growth Factors
Project Aspects
Project Criteria
Project Life Cycle
Project Management Profession
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3. Project Management Emergence
Explosion in human knowledge
Mass customization of products and services
Expansion of global markets
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4. Forces Of Project Management
Forces driving Project Management:
1. exponential expansion of human knowledge
2. growing demand for a broad range of complex,
sophisticated, customized goods and services
3. evolution of worldwide competitive markets for the
production and consumption of goods and services
Team-based problem solving v. individual
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5. The Professionalism of Project Management
Complexity of problems facing the project manager
Growth in number of project oriented organizations
The Project Management Institute (PMI) was established in 1969
By 1990 it had 7,500 members
1995, over 17,000 members
1998--exploded to over 44,000 members
This exponential growth is indicative of the rapid growth in the use of projects
Importance of PMI as a force in the development of project management as a profession
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6. Project Management Institute: Membership Growth Curve
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7. Organizational Imperatives
Traditional hierarchical management declining
Consensual management increasing
Increasing reliance on systems engineering
Projects integral to organizational strategy
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8. The Definition of a “Project”
Must make a distinction between terms:
Program - an exceptionally large, long-range objective that is broken down into a set of projects
Task - set of activities comprising a project
Work Packages - division of tasks
Work Units - division of work packages
A specific, finite task to be accomplished
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9. Project Management A Working Definition
A problem with a known solution scheduled for completion—unique and non-routine activities
Project Management:
The science and art of solving the problem within predetermined time and resource parameters
Shouldering just enough risk to escape with your career intact!!!
© 2006 John Wiley and Sons, Inc.

10. Characteristics of a Project
Have a supported purpose/importance
Performance specifications (form, fit, function)
Known (bounded) solution
Have a life cycle with finite due date
Interdependencies
Uniqueness
Resource requirements and tradeoffs
Stakeholder Conflict
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11. Quasi-Projects and Fuzzy Goals
Tasks without Specific Targets
No Who, What, When, Where, How Much
Implied Performance, Cost, Time Constraints
“Projects” to Determine Project Scope
Warning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers
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12. Objectives of a Project
Project Objectives:
Performance
Time
Cost
Expectations of clients inherent part of the project specifications
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13. Objectives of a Project
3 Project Objectives:
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14. Why Project Management?
Companies have experienced:
Better customer relations
Shorter overall delivery times
Lower costs and higher profit margins
Higher quality and reliability
Higher worker morale
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15. Why (not) Project Management?
Companies have also experienced some negatives:
Greater organizational complexity
Increased likelihood of organizational policy violations
Higher costs
More management difficulties
Low personnel utilization
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16. © 2006 John Wiley and Sons, Inc.
The Project Life Cycle
Stages of a Conventional Project:
Slow beginning
Buildup of size
Peak
Begin a decline
Termination
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17. © 2006 John Wiley and Sons, Inc.
The Project Life Cycle
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18. © 2006 John Wiley and Sons, Inc.
The Project Life Cycle
Projects also exist which do not follow the conventional project life cycle
Comprised of subunits that have little use as a stand alone unit, yet become useful when put together
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19. © 2006 John Wiley and Sons, Inc.
The Project Life Cycle
Time distribution of project effort is characterized by slow-rapid-slow
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20. Project Management Life Cycle
Definition
Planning
Implementation
Delivery
Level of effort
1. Goals
2. Specifications
3. Scope
4. Responsibilities
5. Teams
1. WBS
2. Budgets
3. Resources
4. Risks
5. Schedule
1. Status reports
2. Change Orders
3. Quality Audits
4. Contingencies
1. Train user 2. Transfer documents 3. Release resources 4. Reassign staff 5. Lessons learned
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21. Proactive Project Life Cycle
High
Project Manager Roles and Responsibilities
Level of
Value
Effort
Change Management System
Closed-Loop Planning-Monitor-Control System
Project Evaluation (Audit) Process
Low
Define Plan Implement Delivery
Scope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve”
Tradeoffs Detailed Budget Cost Containment Final Report
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22. © 2006 John Wiley and Sons, Inc.
The Project Life Cycle
Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns
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23. Projects in Contemporary Organizations
Figure 1-3
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24. Projects in Contemporary Organizations
Figure 1-4
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25. Projects in Contemporary Organizations
Figure 1-5
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26. Projects in Contemporary Organizations
Figure 1-6
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27. © 2006 John Wiley and Sons, Inc.
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